Thursday, November 16, 2017

Senate Republican Tax Plan Would on Average *Raise* Taxes on All Income Groups Earning Less Than $75K

Congress’s Joint Committee on Taxation says the Senate version of the Tax Cuts and Jobs Act would raise taxes on most low and middle-income taxpayers.

Households earning between $75,000 and $100,000 will see, on average, no tax cut. And households earning less than $75,000 per year will see, on average, a tax increase.

Lily Batchelder, a tax professor at NYU who used to be the chief tax counsel for the Senate Finance Committee, has the chart:

New estimates: Senate Republican tax plan would on average *raise* taxes on all income groups earning less than $75K by 2027, according to nonpartisan official estimators JCT. 1/2 pic.twitter.com/ov0tUZC3TZ

If the grocery store lowers a price today, but then raises it again next week, next week's price change is still an increase. Your position makes the assumption that today's tax rate is somehow the legitimate rate.